Housing market participants largely welcomed a critical bipartisan agreement on housing finance reform released Tuesday, viewing it as a serious effort to address an issue that has bedeviled policymakers for more than five years.

Senate Banking Committee Chairman Tim Johnson and Sen. Mike Crapo, the panel’s top Republican, offered an outline of a bill that would unwind Fannie Mae and Freddie Mac and establish a government backstop for the secondary mortgage market, which would be regulated by a new supervisor.

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